Short answer: In Washington, DC, the median home value is $733,400 and the median 3-bedroom rents for $2,567/mo (Census ACS 2024). That's a rent-to-price ratio of 0.35%, so it misses the 1% rule and ranks #41 of the 50 largest US rental markets. With 20% down at 7.40%, FirstDoor scores a median-priced home Pass (−$2,697/mo cash flow).
Key numbers
The 1% rule in Washington
The 1% rule says monthly rent should be at least 1% of the price. Here's how Washington compares.
Across all rentals (not just 3-bedrooms) the ratio is 0.26%. A home renting for the median 3-bedroom rent would need to cost about $257,000 or less to pass.
A typical Washington home, scored
We took a home at the median value, gave it the median 3-bedroom rent, and ran it through the same math as the FirstDoor calculator: 20% down, a 30-year loan at 7.40%, the city's median tax rate, and standard expense budgets.
| 3-bedroom rent (median) | $2,567 |
| Property tax ($4,594/yr, local median) | −$383 |
| Insurance ($3,670/yr, assumed) | −$306 |
| Vacancy 7% · Maintenance 5% · Management 8% | −$513 |
| Net operating income | $1,365 |
| Mortgage (P&I on $586,720 at 7.40%) | −$4,062 |
| Monthly cash flow | −$2,697 |
What price works in Washington?
Same rent, different prices. Here's the most you could pay in Washington for each result, keeping the median 3-bedroom rent and local tax rate.
Takeaways
- Washington's 0.35% ratio is well under the 1% rule (#41 of 50). Most investors here are betting on appreciation, not monthly income.
- A median-priced home here would cost you about $2,697/mo out of pocket after the mortgage and every expense. To break even you'd need to pay about $317,000, 57% below the median.
- Prices are outrunning rents: home values rose 2.5% from 2023 to 2024 while 3-bedroom rent fell 2.4%. The 1% math got tougher.
- Renters are the majority here (59% of households), so the tenant pool is deep.
Frequently asked questions
Does Washington pass the 1% rule?
No, on typical numbers. The median 3-bedroom gross rent is $2,567/mo and the median home value is $733,400 (Census ACS 2024 1-year), a ratio of 0.35%. To pass at that rent, a home would need to cost about $257,000 or less.
What is the typical rent for a 3-bedroom in Washington?
The median gross rent for a 3-bedroom in Washington, DC is $2,567 a month, and $1,931 across all rentals (Census ACS 2024 1-year). Gross rent includes utilities the renter pays, so the landlord's share can be a bit lower. The 3-bedroom median fell 2.4% from 2023.
Can you cash flow a rental in Washington?
At the median price, not easily. With 20% down at 7.40% and realistic expenses, a $733,400 home renting for $2,567 loses about $2,697/mo. It breaks even at roughly $317,000.
How much cash do you need to buy a typical rental in Washington?
About $168,680: a 20% down payment of $146,680 plus closing costs we assume at 3% ($22,000). Lenders often also want several months of reserves. Investment loans commonly need 15–25% down.
Is Washington a good place to buy a first rental?
FirstDoor scores a median-priced home in Washington as Pass (0 of 8 points). That's a starting point, not a verdict on every listing: neighborhoods vary, and buying below the median changes the math. Run any listing through the free calculator.
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Sources
Data: U.S. Census Bureau, 2024 American Community Survey 1-year estimates (released September 2025); year-over-year changes compare with 2023. Mortgage rate: Freddie Mac PMMS, week of October 15, 2026. Retrieved October 15, 2026. Insurance ($3,670/yr), closing costs (3%), maintenance (5%) and management (8%) are FirstDoor assumptions, not local data. Investment-property loans often price above the PMMS average. Medians describe the whole city, not any one home. Educational content, not financial advice.